Hungary-based OTP has reported a full year
net profit of HUF83.8bn ($377m), down 29% year-on-year following a
fourth-quarterly loss, its first quarterly reverse since the final
quarter of fiscal 2008.
OTP was hammered by a Hungarian-government
sponsored scheme enabling foreign currency mortgage customers to
repay loans early at a market discounted rate.
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OTP said that almost 20% of its foreign
exchange mortgage customers took advantage of the scheme, hitting
OTP’s bottom line by HUF31.6bn in 2011.
In fiscal 2011, OTP’s total loans fell by
2% to HUF8.1trn; deposits inched up by only 1% to HUF6.39trn with
total assets increasing by 4% to HYF10.2trn.
Group wide, OTP’s cost income ratio
increased by 120 basis points in fiscal 2011 to 46.3%.
Outside its domestic market, the largest
increases in deposits was witnessed at its subsidiaries in the
Ukraine (+16%), Russia (+12%) and Bulgaria (+7%) with the largest
drop in Serbia (12%).
OTP operates 377 branches in Hungary;
internationally, it ended 2011 with 1,400 branches in 9 countries
across the CEE region.
OTP’s Russia-based subsidiary performed
particularly strongly, with net profit almost doubling to
HUF41bn.
